Is it possible to have a GA S-Corp be a partner for CA based firm? Licensed in CA, currently living in GA. CPA is recommending this but unsure whether an out of state corp can be a partner of a CA law firm

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Oh I know the exact answer to this.
You’re welcome 😉

CA Bar allows California-licensed attorneys to work remotely. The issue you face is the state where you are physically located MUST also allow remote work from that state.
You need to call your state bar and find out.
E.g., Kansas does not allow this to happen. So if you were in Kansas but wanted to practice a remote law firm in California, you couldn’t. You would need to sign up, take, and successfully pass the multi-state bar exam to be allowed to practice law in Kansas so you may remote work into California.

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So that’s the bar issues…
You’re asking about your business formation type. Let’s assume that GA is *not* ok with you to physically practice law in GA but for CA businesses or residents. You pass the multi-state exam. You incorporate you S Corp (which is the ONLY entity type that fit in this scenario) in CA but not as a “foreign entity”, instead, you pay for “an agent” (from legal zoom or the like) which would rent you an address. By doing this, you will pay CA taxes. All income from CA will be taxed at CA rates (sucks I know). Any income that you generate from businesses/clients in GA, however, should be taxed at GA tax rates.

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Probably at the very least would need to file as a foreign entity doing business in CA, but there may be more specific requirements as well.

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